All else is more than fine, except video card.
I would recommend youto upgrade your video card to at least 4650 or even 4670
4670 is around $65 and 4650 is around $50
4670 will give you good performance up to 1680x1050
and
4650 will give you good performance up to 1280x1024
Choose as your resolution is
GooD LucK